The Queensland Government has announced a review into the state’s property laws including the Body Corporate Community and Management Act 1997 and other community titles legislation including body corporate governance issues.
The review period ends on the 22nd of February.
This follows on the heels of the Owners Corporation changes enacted by the New South Wales parliament at the end of 2015.
SSKB – Strata Managers directors Tim Sheehan and Paul Wood, recognised industry experts have reviewed the discussion paper and make a number of observations which will be featured here on the SSKB blog.
Preparing the draft annual budgets for a body corporate is arguably one of the most important tasks undertaken by the committee.
And since it involves raising levies and spending lot owners’ money, you’d expect there to be lots of interest. However, it is very common for a Body Corporate to not achieve a quorum at the Annual General Meeting where the budgets are considered and determined. Occasionally lot owners cannot agree on the budget and subsequently vote it down at the AGM.
Under these circumstances there may be a period of time where the body corporate is not collecting any levies but the bills (like important ones such as insurance, lift contracts, caretakers and electricity) continue to roll in.
We have recommended to the Queensland Government that contributions (set at the previous year’s rate) continue until the budget issue is resolved to ensure there is no issue with cashflow and these bills are paid.
Once the budget is passed, the levies can be adjusted to take into account the contributions already paid.